The bases to be used in allocating expenses, together with other essential information, are as follows: a. Advertising expense-Incurred at headquarters, charged back to divisions on the basis of usage: Winter Sports Divislon, \$446,000; Summer Sports Division, \$504,000. b. Transportation expense-charged back to divisions at a charge rate of $16 per bill of lading: Winter Sports Division, 14,100 bills of lading; Summer Sports Division, 15,500 bills of lading. Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Do not round your interim calculations. Provide supporting schedules for determining service department charges. If required, round per unit amounts to two decimal places and final answers to the nearest dollar